50% retracement held at the day's lows. Traders looking for a break.
The GBPUSD is trading between the 100 and the 200 hour moving averages during most of the London/European session today. The 100 hour moving average (blue line in the chart below) currently comes in at 1.42118. The 200 hour moving average (green line in the chart below) comes in at 1.42788.
In the Asia-Pacific session, there was a move above the upper limit but that move failed. ON the subsequent correction lower, the 50% retracement of the move up from last Thursday's low to Friday's high, held at the 1.42198 level (the low came in at 1.4223 today). The buyers are trying to keep control after the bearish run from the beginning of the year. The push higher on Thursday and Friday saw the rally stall at the floor/ceiling area from earlier in the month. So there is a battle going on at these levels.
Looking at the 5 minute chart below, the price of the pair has been chopping up and down above and below the closing level from Friday at 1.4258. The 100 bar moving average on the 5 minute chart is currently at that level. The prices testing the 200 bar moving average at 1.4272. Like on the hourly chart, it seems traders are looking for a push in the preferred direction.
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